Wednesday Watch

Night Trading 

• Asian equity indices are -.25% to +.5% on average.

• Asia Ex-Japan Investment Grade CDS Index 58.5 +.75 basis point.

• China Sovereign CDS 29.25 +1.0 basis point.

• Bloomberg Emerging Markets Currency Index 62.27 -.01%.
• Bloomberg Global Risk-On/Risk Off Index 1,389.0 +13.0 points.
• Volatility Index(VIX) futures 26.4 +2.23%
• FTSE 100 futures -.48%.

• S&P 500 futures -.54%.

• NASDAQ 100 futures -.41%.

Morning Preview Links

Earnings of Note 
Company/Estimate 

 

Before the Open: 

• (PAYX)/.66

After the Close:

• None of note
  

Economic Releases

8:30 am EST

• Durable Goods Orders for Nov. is estimated to rise +.6% versus a +1.3% gain in Oct.
• Durables Ex Transports for Nov. is estimated to rise +.5% versus a +1.3% gain in Oct. 
• Cap Goods Orders Non-Defense Ex Air for Nov. is estimated to rise +.6% versus a +.8% gain in Oct.
• Initial Jobless Claims for last week are estimated to fall to 880K versus 885K the prior week.
• Continuing Claims are estimated to rise to 5560K versus 5508K prior.
• Personal Income for Nov. is estimated to fall -.3% versus a -.7% decline in Oct.
• Personal Spending for Nov. is estimated to fall -.2% versus a +.5% gain in Oct.
• The PCE Core MoM for Nov. is estimated to rise +.1% versus unch. in Oct.
  

9:00 am EST

• The FHFA House Price Index MoM for Oct. is estimated to rise +.6% versus a +1.7% gain in Sept.

10:00 am EST

• New Home Sales for Nov. is estimated to fall to 995K versus 999K in Oct. 

10:30 am EST

• Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,899,560 barrels versus a -3,135,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +248,780 barrels versus a +1,020,000 barrel gain the prior week. Distillate inventories are estimated to fall by -1,538,890 barrels versus a +167,000 barrel gain the prior week. Finally, Refinery Utilization is estimated to rise by +.52% versus a -.8% decline prior.

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The weekly MBA Mortgage Applications report and bank lending report could also impact trading today.

Market Hours
Normal:

• 9:30 am - 4:00 pm EST
  

BOTTOM LINE: Asian indices are mostly higher, weighed boosted by commodity and consumer shares in the region. I expect US stocks to open mixed and to weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.